Crevald is correct - Libya appears not to have had the logistics to conquer Egypt. But Libya and Tunisia combined did.
Which the Germams tried to exploit, getting permission from Darlan, but failed due to politics and logistics. In 1941 the political situation precludes seizing French territory and provoking rebellion, so the Germans relied on inadequate on French trucks and shipping. Darlan was hesitant to let the Germans make greater use of Tunisia due to the threat of British invasion, particularly after the occupation of Lebanon and Syria. Besides, the Gernans get to Alexandria and what next? The British cripple the port and retreat to new defenses while continuing to build up men and material in the region and reducing port capacity via bombing. The Germans are now more overextended than ever before with a useless port to show for it and an intact British opponent.
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